India surpasses China as top smartphone exporter to the US

India has recently achieved a significant milestone by overtaking China as the leading exporter of smartphones to the United States. This shift occurred largely due to Apple's strategic decision to pivot its manufacturing processes to New Delhi, influenced by a tumultuous trade relationship between the U.S. and China. During the second quarter of 2025, India accounted for 44% of smartphone imports into the U.S., a substantial increase from just 13% in the same period the previous year. In contrast, China’s export share plummeted to 25%, dropping it down to third place behind Vietnam. The impressive growth of India's smartphone manufacturing sector is evident, showing a remarkable 240% increase in production volume year-over-year. Research firm Canalys indicates that this growth is primarily propelled by Apple, which has significantly expanded its production capacity in India while focusing most of its exports to meet the U.S. market demand. Apple has dedicated substantial resources to establishing a robust manufacturing base in India as part of its broader strategy to mitigate risks associated with reliance on China amidst ongoing trade tensions. While India’s ascent in the smartphone export domain marks a pivotal moment for the country, it is important to note that Apple remains reliant on its established manufacturing networks in China. Despite the advantages of production in India, Apple’s CEO Tim Cook acknowledged that many iPhones sold in the U.S. will still originate from China due to existing production arrangements. This dual dependence illustrates the complex dynamics of global trade and manufacturing in the electronics sector. The current geopolitical climate, compounded by tariffs and trade negotiations, has forced manufacturers to reconsider their supply chain strategies, with many seeking diversification away from China. This trend has opened opportunities for other countries like Vietnam and India, which are increasingly becoming attractive alternatives for businesses looking to mitigate risks associated with overly concentrated production bases, particularly highlighted during the pandemic when China's stringent COVID-19 policies exposed vulnerabilities in global supply chains.